Daniel Wettreich and Mark Wettreich hire lawyerSpoke to Roodenburg today. I was surprised to see him taking this all so seriously. Well, he is the largest shareholder. I asked him who in their right mind would act as lawyer for Daniel Wettreich and Mark Wettreich. Turns out it's some guy named Jim Boyle. Are you as shocked as I am Daniel Wettreich and Mark Wettreich. I guess probably not. Look what I found:
https://www.osc.gov.on.ca/documents/en/Proceedings-RAD/rad_20060412_boylejp.pdf
Ontario Securities Commission Allegations Relevant to the Motion
Staff alleges in the Statement of Allegations that Boyle was the principal architect of a “course of conduct” involving the shares of three Ontario issuers: Complex Minerals Inc. (“Complex”), Nucanolan Resources Corp. (“Nucanolan”), and GoldMint Explorations Ltd. (“GoldMint”). Boyle allegedly conceived and designed transactions which he executed primarily through nominees and accommodation parties (the “Nominee Shareholders”), including friends, associates and members of his family. It is alleged that Melnick and Malone acted in concert with Boyle.
Staff alleges that the respondents engaged in unregistered trading and authorized or facilitated unlawful distributions of shares of Complex, Nucanolan and GoldMint in a series of transactions. It is alleged that the predominant purpose of the unlawful trading and distributions was to create tradeable securities for sale to the public. It is alleged that the creation of these tradeable shares was achieved through a series of non-cash transactions and improper and abusive reliance on the provisions of the Act, including exemptions to registration and prospectus requirements.
Staff alleges that, in addition to breaching Ontario securities law, the respondents participated in a course of conduct that compromised the integrity of the capital markets, was abusive of Ontario’s capital markets and was contrary to the public interest.
The course of conduct alleged by Staff to be contrary to the public interest started with the formation of Complex, Nucanolan and GoldMint through three separate reverse takeovers and initial distributions to the Nominee Shareholders.
Staff alleges that shares of Complex, Nucanolan and GoldMint received in the initial distributions were transferred by the Nominees Shareholders though three step processes (the “Three Step Process”) to companies owned by Boyle and companies owned or controlled by persons who were nominees or accommodation parties of Boyle (the “Nominee Companies”).
The first step of the process involved the sale of the “economic potential” of the shares by the Nominee Shareholders to First Mulmur Corporation (“FMC”). The second step involved the transfer of the “equity of redemption” of the shares from the Nominee Shareholders to the Nominee Companies. The third step involved the purchase by the Nominee Companies from FMC of the “economic potential” of the shares. The shares were then sold by the Nominee Companies to three broker dealers, namely A.C. MacPherson & Co Inc., J.M. Charter Securities Inc. and Arlington Securities Inc., who then sold the shares to the public. It is alleged that the principal effect of the Three Step Process was to manufacture debts to FMC. On the basis of these manufactured debts, funds generated from the sales of the shares to the public were ultimately directed to FMC and others, and then to Boyle, Melnick and others.
In particular, Staff alleges that some of the proceeds from the sales of shares to the broker dealers were ultimately received by Boyle and Melnick after August 5, 1999.
Staff alleges that shares of GoldMint and Nucanolan issued in the initial distributions were also sold to the broker dealers outside the Three Step Process.
Staff alleges, at paragraph 58 of the Statement of Allegations, that in the course of the initial Complex distribution to the Nominee Shareholders, an aggregate of 7,200,016 Complex securities were issued to three individuals and that these securities were then transferred to a number of persons and companies in 2000.
Further, Staff alleges at paragraph 60 of the Statement of Allegations, that in the course of the Nucanolan distribution to the Nominee Shareholders, 4.5 million Nucanolan shares were issued to Complex. The shares were disposed of in a private sale in December, 2000.